HomeMy WebLinkAbout09604RESOLUTION NO. 9604
A RESOLUTION APPROVING AN AGREEMENT
BETWEEN THE CITY OF PUEBLO AND BLACK &
VEATCH CORPORATION IN THE AMOUNT OF $29,400
FOR PROFESSIONAL SERVICES ASSOCIATED WITH
THE WASTEWATER UTILITY FINANCIAL PLAN AND
RATES
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
An Agreement dated May 28, 2002, a copy of which is attached hereto and made
a part hereof, after having been approved as to form by the City Attorney, by and
between Pueblo, a Municipal Corporation, and Black & Veatch Corporation, is hereby
approved.
SECTION 2.
Funds for said professional services shall be paid from Account No. 525 -4130-
432.30 -01.
SECTION 3.
The President of the City Council is hereby authorized to execute said
Agreement on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix
the seal of the City thereto and attest the same.
INTRODUCED: May 28, 2002
BY: Al Guru 1 e
CO CILPERSON
APPROVED:
PRES ENT OF CITY COUNCIL
ATTESTED BY:
CWY CLERK
i [7 —=,) .1
L --)
Background Paper for Proposed
RESOLUTION
DATE: MAY 28, 2002
DEPARTMENT: WASTEWATER
Gene Michael, Director
TITLE
4" - :ff 9 & O�L
AGENDA ITEM # `1--
16a I
A RESOLUTION APPROVING AN AGREEMENT BETWEEN
PUEBLO AND BLACK & VEATCH CORPORATION IN THE
$29,400 FOR PROFESSIONAL SERVICES ASSOCIATE
WASTEWATER UTILITY FINANCIAL PLAN AND RATES
ISSUE
THE CITY OF
AMOUNT OF
D WITH THE
Should the City of Pueblo enter into an agreement with Black & Veatch for
professional services associated with the Wastewater Utility Financial Plan and
Rates?
RECOMMENDATION
Approval of the Resolution.
BACKGROUND
In 1978, the City of Pueblo implemented a sewer user charge system. Over the
years the system has been reviewed and rates adjusted, if necessary. Since the
new Water Reclamation Facility (WRF) was partially funded by a Federal Grant
and Revenue Bonds, the City is obligated to maintain the sewer user charge
system. The EPA requires that each customer class pay its proportional share of
operation and maintenance expenses plus replacement capital costs required to
keep the City's sanitary sewer system in good repair and working order.
Since the last major review and analysis of the financial plan and rates in 1987,
the City's Wastewater staff has annually reviewed and updated the plan. It is
now time to perform another detailed review and analysis of the plan and rates.
FINANCIAL IMPACT
The proposed fee for professional services stipulated in the agreement is
$29,400. If approved, the funds will come from the Wastewater Administration —
Professional Services Account number 525 - 4130 - 432.30 -01.
Ver. 05/09/02
AGREEMENT
FOR PROFESSIONAL ENGINEERING SERVICES
THIS AGREEMENT is made and entered this 28th day of May, 2002, by and between the Cityof Pueblo, a
Municipal Corporation ( "Client ") and Black & Veatch Corporation ( "Engineer ") for Engineer to render professional
engineering and related consulting services for Client with respect to review and analysis of wasterwater rates and
charges, including user, excessive strenght surcharges and industrial pretreatment charges, hereinafter referred to as the
"Project." In consideration of the mutual covenants hereinafter set forth, the parties agree as follows:
SECTION 1. GENERAL AND SCOPE OF SERVICES
(a) Engineer shall satisfactorily perform the professional engineering and consulting services for the
Project described in more detail in Schedule 1 attached hereto ( consisting of Request for Proposal for Project No. WW-
0202 and B &V Proposal letter dated April 22, 2002) and incorporated herein by reference (the "Basic Services "). Such
services shall include all usual and customary civil, sanitary, mechanical and electrical engineering services including
any required cost estimating and economic analysis services incident to its work on the Project.
(b) To the extent Engineer performs any of the Project work through subcontractors, Engineer shall be
and remain as fully responsible for the full performance and quality of services performed by such subcontractors as it
is for services performed directly by Engineer.
SECTION 2. ENGINEER'S RESPONSIBILITIES
(a) Engineer shall be responsible for the professional quality, technical accuracy and timely completion
of Engineer's work, including that performed by Engineer's consultants and subcontractors, and including drawings,
reports and other services, irrespective of Client's approval of or acquiescence in same.
(b) Engineer shall be responsible, in accordance with applicable law, to Client for all loss or damage to
Client caused by Engineer's negligent act or omission; exceptthat Engineerhereby irrevocably waives and excuses Client
and Client's attorneys from compliancewith any requirement to obtain a certificate of review as a condition precedent
to commencementof an action, including any such requirements set forth in Section 13 -20 -602, C.R.S. or similar statute,
whether now existing or hereafter enacted.
(c) Engineer shall be completely responsible for the safety of Engineer's employees in the execution of
work under this Agreement and shall provide all necessary safety and protective equipment for said employees.
(d) Engineer acknowledges that completion of the comprehensive rate study reports as described in the
Basic Services, shall be accomplished by July 26, 2002.
(e) Before undertaking any work or incurring any expense which Engineer considers beyond or in addition
to the Scope of Work described in Schedule 1 or otherwise contemplated by the terms of this Agreement, Engineer shall
advise Client in writing that (i) Engineer considers the work beyond the scope of this Agreement, (ii) the reasons that
Engineer believes the out of scope or additional work should be performed, and (iii) a reasonable estimate of the cost
of such work. Engineer shall not proceed with any out of scope or additional work until authorized in writing by Client.
The compensation for such authorized work shall be negotiated, but in the event the parties fail to negotiate or are unable
to agree as to compensation, then Engineer shall be compensated for its direct costs and professional time at the rates
set forth in Schedule of Hourly Rates attached hereto.
Ver. 05/09/02
SECTION 3. FEES FOR SERVICES: PAYMENT.
(a) Client will pay to Engineer as full compensation for all services required to be performed by Engineer
under this Agreement, except for services for additional work or work beyond the scope ofthis Agreement, the maximum
sum of U.S. $29,400.00, computed in accordance with the Schedule of Hourly Rates attached hereto.
(b) Engineer shall submit periodic, but not more frequently than monthly, applications for payment,
aggregating to not more than the maximum amount set forth above, for actual professional services rendered and for
reimbursable expenses incurred. Applications for payment shall be submitted based upon the hourly rates and expense
reimbursement provisions set forth in Schedule of Hourly Rates attached hereto, and shall contain appropriate
documentation that such services have been performed and such expenses incurred. Thereafter, Client shall pay
Engineer for the amount of the application within 40 days of the date such application is received.
(c) No separate or additional payment shall be made for profit, overhead, local telephone expenses,
lodging, routine photocopying, computer time, secretarial or clerical time or similar expenses unless otherwise provided
and listed in Schedule of Hourly Rates.
(d) No compensation shall be paid to Engineer for services required and expenditures incurred in
correcting Engineer's mistakes or negligence.
(e) Compensation for authorized work beyond the scope of this Agreement shall be governed by the
provisions of Section 2(e) of this Agreement.
(f) In the event services under this Agreement are phased and to be performed in more than one fiscal year
or are subject to annual appropriation, Engineer acknowledges that funds only in the amount of initial appropriation are
available and it shall confirm availability of funds before proceeding with work exceeding initial and subsequent annual
appropriations.
SECTION 4. CLIENT'S RESPONSIBILITIES
(a) Client agrees to advise Engineer regarding Client's Project requirements and to provide all relevant
information, data and previous reports accessible to Client which Engineer may reasonably require.
(b) Client shall designate a Project Representative to whom all communications from Engineer shallbe
directed and who shall have limited administrative authority on behalf of Client to receive and transmit information and
make decisions with respect to the Project. Unless otherwise designated after the date of this Agreement, Client's Project
Representative shall be Gene Michael, Director of Wastewater Department, 211 East "D" Street, Pueblo, Colorado.
Said representative shall not, however, have authority to bind Client as to matters of governmentalpolicy or fiscal policy,
nor to contract for additions or obligations exceeding a value which is $5,000 or 10% ofthe maximum contract price,
whichever is greater.
(c) Client shall examine all documents presented by Engineer, and render decisions pertaining thereto
within a reasonable time. The Client's approval of any drawings, specifications, estimates, reports, documents or other
materials or product furnished hereunder shall not in any way relieve Engineer of responsibility for the professional
adequacy of its work.
(d) Client shall perform its obligations and render decisions within a reasonable time under the
circumstances presented. Based upon the nature of Client and its requirements, a period of 14 days shall be presumed
reasonable for any decision not involving policy decision or significant financial impact. A period of 46 days shall be
presumed reasonable for Client to act with respect to any matter involving policy or significant financial impact. The
-2-
Ver. 05/09/02
above periods of presumed reasonableness shall be extended where information reasonably required by Engineer is not
within the custody or control of Client but must be procured from others.
SECTION 5. TERMINATION.
(a) Client reserves the right to terminate this Agreement and Engineer's performance hereunder, at any
time upon written notice, either for cause or for convenience. Upon such termination, Engineer and its subcontractors
shall cease all work and stop incurring expenses, and shall promptly delivery to Client all data, drawings, specifications,
reports, plans, calculations, summaries and all other information, documents and materials as Engineer may have
accumulated in performing this Agreement, together with all finished work and work in progress.
(b) Upon termination of this Agreement for events or reasons not the fault of Engineer, Engineer shall be
paid at the rates specified in the Schedule of Hourly Rates for all services rendered and reasonable costs incurred to date
oftermination; togetherwith any reasonable costs incurred within 10 days oftermination provided such latter costs could
not be avoided or were incurred in mitigating loss or expenses to Engineer or Client. In no event shall payment to
Engineer upon termination exceed the maximum compensation provided for complete performance in Section 3(a).
(c) In the event termination of this Agreement or Engineer's services is for breach of this Agreement by
Engineer, or for other fault of Engineer including but not limited to any failure to timely proceed with work, or to pay
its employees and consultants, or to perform work according to the highest professional standards, or to perform work
in a manner deemed satisfactory by Client's Project Representative, then in any of such events, Engineer's entire right
to compensation shall be limited to the lesser of (a) the reasonable value to Client of completed work or (b) payment
at the rates specified in the Schedule of Hourly Rates for services satisfactorily performed and reimbursable expenses
reasonably incurred, prior to date of termination.
(d) Engineer's professional responsibility for its completed work and services shall survive any termination.
SECTION 6. RESERVED
SECTION 7. USE OF DOCUMENTS
(a) Plans, drawings, designs, specifications, estimates, reports and all other documents prepared or
provided by Engineer hereunder shall become the sole property of Client, and Client shall be vested with all rights
therein of whatever kind and howevercreated, whether by common law, statute or equity. Client shall have access at
all reasonable times to inspect and make copies of all notes, designs, drawings, specifications, and all other technical data
or other documents pertaining to the work to be performed under this Agreement. In no event shall Engineer publish
work product developed pursuant to this Agreement except (i) with advance written consent of Client and (ii) in full
compliance with the requirements of this Agreement and any applicable state or federal regulations.
SECTION 8. INSURANCE AND INDEMNITY
(a) Engineer agrees that it shall procure and will maintain during the term of this Agreement, such
insurance as will protect it from claims under workers' compensation acts, claims for damages because of personal injury
including bodily injury, sickness or disease or death of any of its employees or of any person other than its employees,
and from claims or damages because of injury to or destruction of property including loss of use resulting therefrom; and
such insurance will provide for coverage in such amounts as set forth in subparagraph (b).
(b) The minimum insurance coverage which Engineer shall obtain and keep in force is as follows:
-3-
Ver. 05/09/02
(i) Workers' Compensation Insurance complying with statutory requirements in Coloradoand
in any other state or states where the work is performed.
(ii) Comprehensive General and Automobile Liability Insurance with limits not less than Six
Hundred Thousand and No /100 Dollars ($600,000.00) per person and occurrence for personal injury, including but not
limited to death and bodily injury, and Six Hundred Thousand and No /100 Dollars ($600,000.00) per occurrence for
property damage.
(iii) Professional Liability Insurance with coverage of not less than $1,000,000, and with a
deductible acceptable to Client.
(c) Engineer agrees to hold harmless, defend and indemnify Client from and against any liability to third
parties, arising out of negligent acts or omissions of Engineer, its employees, subcontractors and consultants.
SECTION 9. SUBCONTRACTS
(a) Client acknowledges that Engineer is the prime contractor and the only party with whom Client has
a contractual relationship under this Agreement. To the extent Engineer performs any Project activities through
subconsultants or subcontractors, Engineer shall contractually bind each of its subconsultants and subcontractors by
subcontract agreement to all of the terms of this Agreement which are for the benefit of Client, and Client shall be a third
party beneficiary of those subcontract provisions.
(b) Engineer shall indemnify and defend Client from all claims and demands for payment for services
provided by subcontractors of Engineer. -
(c) Engineer acknowledges that, due to the nature of the services to be provided under this Agreement,
the Client has a substantial interest in the personnel and consultants to whom Engineer assigns principal responsibility
for services performedunderthis Agreement. Consequently, Engineer shall identify in writing to Client the individual(s)
assigned to each task prior to proceeding with the given task, and client shall advise Engineer of any reasonable objection
thereto within 10 days of receipt of such identification. Engineer shall not change consultants or key personnel except
after giving notice of a proposed change to Client andreceiving Client's consent thereto. Engineer shall not assign or
reassign Project work to any person to whom Client has reasonable objection.
SECTION 10. , (RESERVED)
SECTION 11. MISCELLANEOUS
(a) Notices Any and all notices or other communications required or permitted by this Agreement or by
law to be served on or given to either Engineer or Client by the other party shall be in writing and shall be deemed duly
served and given when personally delivered to the party to whom it is directed, or in lieu of such personal service, when
deposited in the United States mail, first -class postage prepaid, addressed to the Client, Attention:
Gene Michael, 211 East "D" Street, , Pueblo, Colorado, or to Engineer at
11900E Cornell Avenue Suite 300 Aurora Colorado 80014
. Either party may change his address for the purpose ofthis paragraph
by giving written notice of such change to the other party in the manner provided in this paragraph.
(b) Entire Agreement This instrument contains the entire agreement between Engineer and Client
152
Ver. 05/09/02
respecting the Project, and any other written or oral agreement or representation respecting the Project or the duties of
either Client or Engineer in relation thereto not expressly set forth in this instrument and its attachments is null and void.
(c) Successors and Assigns This Agreement shall be binding on the parties hereto and on their successors
and assigns; provided, however, neither this Agreement, nor any part thereof, nor any moneys due or to become due
hereunder to Engineer may be assigned by it without the written consent of Client.
(d) Amendments No amendment to this Agreement shall be made nor be enforceable unless made by
written amendmentsignedby an authorized representative ofEngineer and by Client in accordance with the requirements
of Section 4(b) of this Agreement or upon authorization of Client's governing board.
(e) Choice of Law This Agreement shall be governed and interpreted in accordance with the laws of the
State of Colorado. Any unresolved dispute arising from or concerning any breach of this Agreement shall be decided
in a state court of competent jurisdiction located in Pueblo, Colorado.
(f) Equal Employment Opportunity In connection with the performance of this Agreement, neither
Engineer nor its consultants shall discriminate against any employee or applicant for employmentbecause of race, color,
religion, sex, national origin, disability or age. Engineer shall endeavor to insure that applicants are employed, and that
employees are treated during employment without regard to their race, color, religion, sex, national origin, disability or
age.
(g) Severabilitv If any provision ofthis Agreement is determined to be directly contrary to and prohibited
by law or the requirements of any federal grant or other Project funding source, then such provision shall be deemed void
and the remainder of the Agreement enforced.
IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement as of the day and year
first above written. -
CITY OF PUEBLO, A MUNICIPAL CORPORATION
ATTEST:
2 6; B,
City 16erk President of the City Council
BLACK & VEATCH CORPORATION
By
Name: JOn G 1
Title: V I C e r, t
F:\ FILES \crrY\wwTP\Rataatudy2oo2 \prof- agmt.wpd -�
"SCHEDULE 1"
144"
BLACK & VEATCH
11900 East Cornell Avenue
Suite 300
Aurora, Colorado 80014 USA
Black & Veatch Corporation
Tel: (303) 671 -4200
Fax: (303) 671 -4285
April 22, 2002
Mr. Gene Michael
Director of Wastewater
City of Pueblo
230 South Mechanic
Pueblo, CO 81003
Dear Mr. Michael:
Black & Veatch is pleased to present this Proposal for the City of Pueblo's Wastewater Rate Review, Project
No. WW -0202. Our proposal is based on our understanding of your study objectives as expressed in the proposal
request and in our March 28 meeting in your office.
We are very interested in performing this important stud and have dedicated the necessary resources to deliver
executive and comprehensive study reports b ul 26, 200 This schedule will allow you to incorporate study
findings into the preparation of the 2003 Budget. Our project team is comprised of professional engineers, certified
public accountants, and utility financial specialists that bring the following unique qualifications to your study:
■ City of Pueblo Experience. We have performed multiple financial studies for the Wastewater Department
since the early 1980s. The City has used Black & Veatch reports and rate models to guide their financial
planning and provide a financially healthy utility. Our principal -in- charge has led each of these
engagements.
■ Colorado Experience. Our team has performed about 250 engagements for nearly 60 entities within the
State of Colorado including recent engagements for Fort Collins, Greeley, Colorado Springs, Longmont,
Trinidad, and Pueblo. This level of experience is unmatched.
■ National Perspective. Our team is from the Management Consulting Division of Black & Veatch. With
80 professionals in 10 offices across the nation, the Division provides vast resources to address literally any
financial issue that may arise in this study. MCD professionals have completed over 1,000 utility financial
studies during the past five years.
■ Defensible Methods. Management Consulting Division personnel chaired committees that authored the
wastewater industry rate manual.
■ Public Education. We routinely participate in public education forums on behalf of our clients. We have
worked with citizen advisory committees in Castle Rock and Golden. We have participated in an open
house in Fort Collins to educate the public on structure changes in plant investment fees.
We look forward to personally discussing this important study with you. Thank you for the opportunity to submit
this proposal.
Very truly yours,
John A. Gallagher
Vice President
building a World of difference-
City of
REQUEST FOR PROPOSAL
Project No.: 02 -036
Project Name: Wastewater Rate Review
(WW0202)
Opening: April 22, 2002 at 10:00 a.m.
The undersigned, having carefully read and considered the Request for Proposal for Project 02-
036, does hereby offer to perform such services on behalf of the City of Pueblo, in the manner
described and subject to the terms and conditions set forth in the attached proposal. Services
will be performed at the rates set forth in said proposal or as subsequently agreed to by ,the
undersigned and City following negotiations.
The undersigned further states that this proposal is made in good faith and is not founded on, or
in consequence of, any collusion, agreement or understanding between themselves and any other
interested party.
NAME OF PERSON OR ENTITY
SUBMITTING PROPOSAL: Black & Veatch Corporation
SIGNATURE OF AUTHORIZED
REPRESENTATIVE:
NAME OF AUTHORIZED
REPRESENTATIVE:
TTFLE OF AUTHORIZED
REPRESENTATIVE:
John A. Gallagher
(Please Print)
Vice President
ADDRESS (office & PO Box) 11900 E. Cornell Ave., Suite 300
Aurora, CO 80014
PHONE 303 - 671 -4200 FAX
FEDERAL TAX I.D. (or Social Security # if individual)
303- 671 -4285
431833073
1
FEE ESTIMATE
® Wastewater Rate Review
� Project No. WW -0202
We estimate the fee for the proposed scope of services to not exceed $29,400 as shown
below. This fee is based on staff effort of 252 hours, hourly billing rates, and direct
expenses. Direct expenses include travel, computer time, reproduction, and per diem
expenses.
b
Q 15
BLACK & VEATCH
C. rr. r.tl.■
Financial
Process
Admin Total
Tasks
Principal
Analyst
Speclst
Asst Hours
Total
Item A — Financial Plan Adequacy
6
72
8 86
8,490
Item B — Rate Structure Adequacy
4
40
16
4 64
7,220
Item C — Elimination of 2002 Increase
2
8
2 12
1,270
Item D — Plant Investment Fee
4
40
4 48
4,820
Item E — Wastewater Billing Function
16
16
4 36
4,880
Total Hours
32
176
16
22 252
Hourly Salary Rate
$195
$95
$150
$60
Total Labor Costs
$6,240
$16,720
$2,400
$1,320
$26,680
Computer Costs
2,180
Miscellaneous
540
Total Study Costs
% $29,400
Q 15
BLACK & VEATCH
C. rr. r.tl.■